Track 1 determination
Parties that meet the eligibility requirements for Track 1 can set their own requirements for project determination:
Where it is considered to meet the eligibility requirements set out in paragraph 21 above, a host Party may verify reductions in anthropogenic emissions by sources or enhancements of anthropogenic removals by sinks from an Article 6 project as being additional to any that would otherwise occur, in accordance with Article 6, paragraph 1 (b). Upon such verification, the host Party may issue the appropriate quantity of ERUs in accordance with the relevant provisions of decision 13/CMP.1 (9/CMP.1, Annex, paragraph 23).
In many cases, the Track 1 national regulations for JI projects adopt a process that is substantially similar to the Track 2 process, with only small modifications. The requirements and process for determination, monitoring and verification are similar to the Track 2 process under the Joint Implementation Supervisory Committee (JISC), except that the functions of the JISC are performed by authorised national bodies of the host Party.
Generally, for Track 1 regulations, the determination process and the issuance of the letter of approval is collapsed into one process, both performed as part of a single project approval by the designated focal point.
In Hungary, the rules governing the Track 1 JI process are set out in the Government Decree 323/2007 (XII 11) Korm. on on the implementation of Act LX of 2007 on the implementation framework of the UN Framework Convention on Climate Change and the Kyoto Protocol thereof (Hungarian JI Rules).
The process for project determination (and the simultaneous process for the issuance of a letter of approval) is as follows:
- Project participants submit the project design document (PDD) to the Ministry of Environment and Water together with the Letter of Endorsement (pre-approval) and a determination report prepared by an accredited independent entity.
- The Ministry publishes the project documentation on its official website and within 90 days of the application date, forwards it to relevant Ministers for comment.
- Ministers have 30 days to make objections. If no objections are made within this timeframe, it is assumed that the project is approved.
- Within 130 days of the application date, the Ministry issues the letter of approval, or rejects the project, and notifies the project participants of its decision.
The Hungarian JI Rules establish a series of criteria for project approval that go beyond the requirements for Track 2 process, including that large hydroelectric projects comply with the World Commission on Dams 2000 report, and that the expected generation can be met within the allocation of AAUs above the commitment period reserve.
Information on Track 1 procedures, including designated focal points (DFPs) and national guidelines and procedures for approving JI projects, is available for each Party from the UNFCCC website here.
Example: New Zealand
The New Zealand Government lists PRE projects that have been determined as JI projects on a dedicated public website. The website lists details of the project, the volume of ERU to be issued and the Parties Involved. This increases the transparency of the Track 1 determination process in-country.
The notice of determination by the New Zealand Government is the listing of the project on the Ministry for the Environment website. Supplementary information on the approved JI projects is made available on the UNFCCC website and the New Zealand Emission Unit Register (NZEUR) is updated to reflect the new project participant involved with the JI project (NZ Ministry for the Environment).